Back from November 6, 2014, Peter Schiff’s Message to Switzerland: Save Your Currency and Your Country – YouTube
Peter mentions that in 1999 Swiss went off the gold standard was 100% of the reserves gold is now just 7% of reserves and now the reserve is mainly euros (paper). I am old fashioned, too. Paper riches turn into ashes at the slightest touch of a match which is why true metals are valuable. Ownership of anything comes from the barrel of guns. That is, property and wealth rights are defended violently throughout history. Any accumulation of property or wealth will be seized by either the mob (we saw this recently in Ferguson MO when mobs burned down businesses while the politicians prevented the police and military from defending them). Switzerland has had the fortune to play off everyone so they can be ‘neutral’ while several world wars raged violently around them.
In 2008, Switzerland had to spend $60 billion to bail out UBS thanks to the lending collapse. Their wild lending loose rules nearly pulled down not just the EU and US banking systems but also their own. They have been running away from this mess for several years but thanks to NATO nations demanding WWIII with Russia, the various chess board moves designed to kill off Putin, Switzerland’s embrace of the euro is now endangering them so they basically dumped it all into the lap of the NATO nations.
Here is an interesting comment at the Schiff video from just two months ago:
On top of that, there is this huge push to have a super-welfare state where no one works unless they want to otherwise they can just goof off: Inequality Fight: Swiss Will Vote on Minimum Income
Back in October, 2013: Cash Bern: Swiss may grant unconditional income for all – YouTube. The scheme demonstrated how rich Switzerland by dumping a load of golden looking coins to illustrate that Switzerland is rich.
Generation Basic Income’s proposal represents a quantum leap. For starters, 2,500 Swiss francs per month is a substantial sum. Also, unlike with welfare programs, beneficiaries wouldn’t be required to document that they are unable to work. That the payments might discourage recipients from looking for a job isn’t a drawback in the eyes of proponents; it’s the whole point. “If unemployment goes up, that’s a great thing,” says Daniel Straub, the coordinator of the referendum effort and author of The Liberation of Switzerland. “Because we should see unemployment as freeing people up to pursue what creates meaning for them.” Adds Enno Schmidt, a painter and documentary film producer who’s campaigned for the idea since 2006: “It’s not societally very efficient if people are forced to do something that they don’t really want to do.”
No one will work. The rich will isolate themselves via various means and the working class will basically quit their jobs due to the stark fact, it is tons more fun to stay home and goof off than to go to work every day. Society will collapse within 5 years. The US already has a system pretty much like that. You sit in government housing in NYC, commit crimes, do drugs and goof off for generations. Complain bitterly about it not being perfect and demand more spending on idle masses that destroy property, make lots of noise at night and robs everyone near and far not to mention, killing people.
The EU system is the same and created the same idle masses that spend much of their free time figuring out how to kill, steal, rob or vandalize. It doesn’t work. The Victorian work houses were very cruel but the concept of making people do something for their welfare money is key to a sane society. Women who have illegitimate children should put them in day care by age 3 and set to work and of course, so long as they are not supporting themselves, be forced to use contraceptives which end when they get married or employed.
Oh, the cruelty, cry the liberals. But what is cruel here? Raising millions of children to be thugs, criminals or victims of crime with no hope of ever rising out of this? The gap between welfare-raised children and middle working class children is already gigantic by age 5. The children raised by idle parents tends to slide into idle adults.
Thursday, the central bank shocked the financial world by abruptly abandoning it. More than three years ago, the Swiss National Bank announced that it would not allow the Swiss franc to fall below 1.20 to the euro, and it has spent a mountain of money defending that peg. But now that it looks like the EU is going to launch a very robust quantitative easing program, the Swiss National Bank has thrown in the towel. It was simply going to cost way too much to continue to defend the currency floor. So now there is panic all over Europe. On Thursday, the Swiss franc rose a staggering 30 percent against the euro, and the Swiss stock market plunged by 10 percent. And all over the world, investors, hedge funds and central banks either lost or made gigantic piles of money as currency rates shifted at an unprecedented rate.
Switzerland sees what is coming next: wars and insurrections inside the EU. Already, the police are raiding Muslim neighborhoods and getting in major shoot outs there. Like US cities when they become more than 50% black, then are completely abandoned by industry, businesses and middle class people, the EU is in the same downward spiral with armies of poor pouring into the cities.
The Swiss do not have open borders. They are very protectionist.
The Swiss economy will rapidly fall into recession as a result of the SNB move. The Swiss stock market has been blasted, the currency is now nearly 20% higher than it was a day before. Someone will have to fall on the sword, the arrows are pointing at Jordan.
The dust has not settled on this development as of this morning. I will stick my neck out and say that the failure to hold the minimum rate will result in a one time loss for the SNB of close to $100B. That’s a huge amount of money. It comes to 20% of the Swiss GDP!
This assumes that all Swiss are exporters. Most are SAVERS. Savers love a strong currency. Once upon a time, the US was a nation of savers, before 1970. Now, it is a nation of debtors including the entire nation in debt to foreign powers. The Swiss see the dangers of this and so are concerned about protecting their own savings from ravages such as that which has destroyed savings in the US.
How do you know you’re looking at a bad marriage?
Well if one or both of the spouses can’t wait to get out as soon as the smallest crack in the door opens, you have a pretty good clue.
Something like that just happened in Europe as we learned the real reason why so many traders were still invested in the euro: They had nowhere else to go.
As the Swiss National Bank unlocked the doors on its cap on trading euros for Swiss francs, the rush to exit the euro was faster than one of those French bullet trains.
The top Swiss foresee the euro collapsing. It is always on the verge of vanishing suddenly. I expect it to disappear when social chaos makes the EU impossible. This isn’t far off, either.
…some 280,000 people working in Switzerland but living and paying bills in eurozone countries France, Germany or Italy.
These so-called “frontaliers”, or border-crossers, are the biggest winners in Thursday’s Swiss franc surge, seeing their incomes jump 30 percent in the blink of an eye.
As in all currency changes, there are winners and losers which is why we have a currency market. Someone will always be hurt, someone will always get richer. The question always is, will the government fall, will workers be hurt? Hurt workers lash back over time. Destroying their economic health is very dangerous.
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